question is, Quota Yes or Quota No.
I have a
50/50 chance of being right, so therefore, I say; QUOTA -- NO!
larger corporations already doing business worldwide are consolidating
their manufacturing facilities, vendors and suppliers and are moving
non-China production into their preferred manufacturing facilities in
stated many times that to survive and remain profitable, you must perform
the following three things: Competitive COST, QUALITY of specifications
contracted, and ON-TIME DELIVERY.
want your orders to be the first work in process going into a beautiful,
but inexperienced factory? Though these facilities will promise all you
want to hear, I guarantee you are on the road to Chargeback Hell.
50 years of visiting, setting up, and running factory facilities
worldwide, I have seen a lot of hard work and reputations tarnished or
RELATIONSHIPS, RELATIONSHIPS, RELATIONSHIPS will be the key to your
success! These relationships are based on two key elements:
finances and factual communications.
terms you are doing business with (and they might change) after January 1,
2005, make sure you honor your terms of payment. This is the key to keep
your place in line.
the relationship part: it is not with your QC, it is with you personally,
the on-site infrastructure you build and how you monitor your production.
production cannot be monitored properly from the U.S.A. or by the factory
itself. You need to have a trained
quality control infrastructure that understands your particular
say you have worked very hard, the factory has performed, and your people
have done their jobs. You have your at -site cost, you have lived up to
your financial obligations, but the on-time delivery goes to the dogs
because you have not put an effort into your freight forwarder or customs
broker, and your documentation preparation is nonexistent.
you have paid for all of the general administration and for the actual
goods, but you cannot ship or deliver the goods on time. Therefore, you
will have to give away your gross margins and you will be in
of this sound familiar? Let me tell you, it is going to get a lot worse.
Not because it is China, but because you have not taken a "hands on"
realistic approach to your business.
business internationally, your "ducks have to be in a row", and even then,
the currents may slow or cause unforeseen variables.
become your own COO, CFO, and VP of Manufacturing and Sourcing to
understand the necessary requests and needs of your business team.
review all that it takes to process a valid purchase order from acceptance
to completion, you will have a good chance for success.
I am not
saying that you must do everything yourself, but that you must have the
systems reporting factual information to you, so that you can make
decisions that will protect your profits. I do not want to be in 2005
during the month of May and say, "I told you so."
I am not
expressing gloom and doom; I am saying that you importers are PROS, but
the rules of the game have changed and are still changing. My other
statement is always, "There is nothing so permanent as change". I will
humbly tell you that Stonefield Josephson's textile/apparel professionals
have over 100 years of experience to advise you.
of the manufacturers at MAGIC, I wish you continued success. To the
retailers, this is your opportunity to meet new vendors and bring exciting
new merchandise to your customers.